|
Report No. : |
350195 |
|
Report Date : |
19.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
GLOBEX TRADING FZE |
|
|
|
|
Registered Office : |
Ras Al Khaimah Free Zone, PO Box 16111, Ras Al Khaimah |
|
|
|
|
Country : |
United Arab
Emirates |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
21.11.2010 |
|
|
|
|
Legal Form : |
Free Zone Establishment – FZE |
|
|
|
|
Line of Business : |
Distributors of Jewellery, Diamonds, Precious Metals and Watches. |
|
|
|
|
No. of Employees : |
04 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
UNITED ARAB EMIRATES - ECONOMIC OVERVIEW
The UAE has an open economy with a high per capita income
and a sizable annual trade surplus. Successful efforts at economic
diversification have reduced the portion of GDP based on oil and gas output to
25%. Since the discovery of oil in the UAE more than 30 years ago, the country
has undergone a profound transformation from an impoverished region of small
desert principalities to a modern state with a high standard of living. The
government has increased spending on job creation and infrastructure expansion
and is opening up utilities to greater private sector involvement. The
country's free trade zones - offering 100% foreign ownership and zero taxes -
are helping to attract foreign investors. The global financial crisis of 2008,
tight international credit, and deflated asset prices constricted the economy
in 2009. UAE authorities tried to blunt the crisis by increasing spending and
boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it
was heavily exposed to depressed real estate prices. Dubai lacked sufficient
cash to meet its debt obligations, prompting global concern about its solvency
and ultimately a $20 billion bailout from the UAE Central Bank and Abu
Dhabi-emirate government that was refinanced in March 2014. Dependence on oil,
a large expatriate workforce, and growing inflation pressures are significant
long-term challenges. The UAE's strategic plan for the next few years focuses
on economic diversification and creating more job opportunities for nationals
through improved education and increased private sector employment.
|
Source
: CIA |
Company
name
GLOBEX TRADING FZE |
||||
|
|
||||
ORDER
DETAILS
|
||||
|
|
||||
|
Business/ Subject Name |
: |
Globex Trading FZE |
||
|
Country |
: |
United Arab Emirates |
||
|
PO Box |
: |
327759 Ras Al Khaimah |
||
|
|
||||
IDENTIFICATION
& CONTACT DETAILS
|
||||
|
|
||||
|
1) Name (s): |
||||
|
Organization Official Name |
: |
GLOBEX TRADING FZE |
||
|
|
||||
|
2) Registered
Address: |
||||
|
Address |
: |
Ras Al Khaimah Free Zone |
||
|
Town |
: |
Ras Al Khaimah |
||
|
Country |
: |
United Arab Emirates |
||
|
PO Box |
: |
16111 |
||
|
Phone (s) |
: |
(971-50) 1595816 |
||
|
Email |
: |
|||
|
|
||||
|
3) Operational
Address & Contact Details: |
||||
|
Address |
: |
I AU Tower, 10th Floor, Unit J, Cluster
Jumeirah Lakes Towers |
||
|
Town |
: |
Dubai |
||
|
Country |
: |
United Arab Emirates |
||
|
PO Box |
: |
327759 |
||
|
Phone (s) |
: |
(971-4) 4529574 |
||
|
Facsimile |
: |
(971-4) 4529574 |
||
|
Email |
: |
|||
|
Mobile |
|
(971-50) 1595816 |
||
|
|
|
(971-55) 5660367 |
||
|
: |
||||
LEGAL
FORM & INCORPORATION (REGISTRATION) DETAILS
|
||||
|
|
||||
|
Legal Form - Category |
: |
Free Zone Establishment - FZE |
||
|
Date of Registration |
: |
21st November 2010 |
||
|
Trade License Number |
: |
5005640 |
||
|
Expiry Date |
: |
20/11/2015 |
||
KEY
FACTS
|
||||
|
|
||||
|
Operational Status |
: |
Steady |
||
|
Financial Condition |
: |
Fair |
||
|
Primary Business Activity |
: |
Distributors of jewellery, diamonds,
precious metals and watches. |
||
|
Number of Employees |
: |
4 |
||
|
Capital |
: |
UAE Dh 100,000 |
||
|
Note: |
||||
|
Engaged in the import and distribution of
jewellery, diamonds, precious metals, watches, clocks and |
||||
|
|
||||
CAPITAL
DETAILS
|
||||
|
|
||||
|
Issued Capital: |
||||
|
NO OF SHARES |
VALUE OF SHARE |
AMOUNT |
||
|
N/A |
N/A |
UAE Dh 100,000 |
||
|
|
||||
|
Paid Up Capital: |
||||
|
NO OF SHARES |
|
AMOUNT |
||
|
N/A |
N/A |
UAE Dh 100,000 |
||
|
|
||||
FINANCIAL
DATA
|
||||
|
Financial highlights provided by local
sources are given below: |
||||
|
Currency: United Arab Emirates Dirham (UAE
Dh) |
||||
|
|
||||
|
Comparative
Figures |
31/12/12 |
31/12/13 |
31/12/14 |
|
|
Current Assets |
72,483,449 |
87,307,578 |
81,782,720 |
|
|
Current Liabilities |
70,067,566 |
82,800,867 |
76,547,076 |
|
|
Working Capital |
2,415,883 |
4,506,711 |
5,235,644 |
|
|
Net Worth |
2,415,883 |
4,506,711 |
5,235,644 |
|
|
Inventory |
|
18,159,292 |
21,801,626 |
|
|
Cash & Bank |
62,645 |
4,835,913 |
188,050 |
|
|
A/Cs Receivable |
62,804,541 |
40,816,331 |
632,564 |
|
|
A/Cs Payable |
14,182 |
66,469,237 |
66,962,233 |
|
|
|
||||
|
Balance Sheet |
31/12/2014 |
|||
|
Cash & Bank |
188,050 |
|||
|
Inventory |
21,801,626 |
|||
|
Deposit Short Term |
2,000 |
|||
|
Accounts Receivable |
632,564 |
|||
|
Other Receivables Accruals |
1,879,429 |
|||
|
Prepayments |
5,324 |
|||
|
Intercompany Loans |
57,273,727 |
|||
|
Accounts Payable |
66,962,233 |
|||
|
Other Payables / Accruals |
45,429 |
|||
|
Intercompany Loans |
9,539,414 |
|||
|
TOTAL CURRENT LIAB |
76,547,076 |
|||
|
Capital 100,000 Retained Earnings (loss) |
5,910,198 |
|||
|
Shareholder's Current Account |
-774,554 |
|||
|
TOTAL EQUITY |
5,235,644 |
|||
|
LIAB & EQUITY |
81,782,720 |
|||
|
TOTAL CURRENT ASSETS |
81,782,720 |
|||
|
TOTAL ASSETS |
81,782,720 TOTAL
|
|||
|
|
||||
|
Profit &
Loss Account |
31/12/12 |
31/12/13 |
31/12/14 |
|
|
Sales / Income |
2,426,959,719 |
2,326,077,189 |
1,260,408,756 |
|
|
Less: Cost of Sales |
-2,424,658,120 |
-2,323,930,994 |
-1,259,270,285 |
|
|
Gross Profit |
2,301,599 |
2,146,195 |
1,138,471 |
|
|
General Operating Expenses |
-332,152 |
-347,544 |
-323,541 |
|
|
Net Operating Profit(Loss) after
Depreciation before Interest |
1,969,447 |
1,798,651 |
814,930 |
|
|
Other Non-operating Income |
113,659 |
593 |
112,134 |
|
|
Net Operating Profit before Tax and after
Extraordinary Items |
2,083,106 |
1,799,244 |
927,064 |
|
|
Profit Before Tax and After Extraordinary
Item |
2,083,106 |
1,799,244 |
927,064 |
|
|
Profit (Loss) After Tax |
2,083,106 |
1,799,244 |
927,064 |
|
|
Net Profit After Tax and Extraordinary
Items |
2,083,106 |
1,799,244 |
927,064 |
|
|
Plus (Minus) Retained Earnings (Loss) b/f |
1,100,784 |
3,183,890 |
4,983,134 |
|
|
Retained Earnings (Loss) c/f |
3,183,890 |
4,983,134 |
5,910,198 |
|
|
Local sources consider subject’s financial
condition to be Fair. |
||||
|
|
||||
BANKER
|
||||
|
|
||||
|
1 |
Name |
Bank of Baroda |
||
|
|
Address |
Kuwait Building Baniyas Road Al Rigga
Deira Dubai |
||
|
|
City |
Dubai |
||
|
|
||||
|
2 |
Name |
Bank of India |
||
|
|
Country |
Hong Kong |
||
|
|
||||
SHAREHOLDERS
|
||||
|
|
||||
|
1 |
Name |
Rohit Goyal |
||
|
|
Country |
India |
||
|
|
Percentage |
100% |
||
|
|
||||
Auditor
|
||||
|
|
||||
|
1 |
Name |
Zenith Certified Chartered Accountants |
||
|
|
Po Box |
242194 |
||
|
|
City |
Dubai |
||
|
|
||||
SENIOR
MANAGEMENT
|
||||
|
|
||||
|
Sr.No |
Name |
Nationality |
Dsignation |
|
|
1 |
Rohit Goyal |
Indian |
Managing Director |
|
|
|
||||
AFFILIATED
COMPANIES
|
||||
|
|
||||
|
1 |
Name |
Al Ain Jewellery Trading DMCC |
||
|
|
Country |
Dubai |
||
|
|
||||
INTERNATIONAL
TRADE ACTIVITY MARKETS
|
||||
|
|
||||
|
Sr.No |
Country |
Activity |
||
|
1 |
Hong Kong |
Import |
||
|
2 |
India |
Import |
||
|
3 |
Switzerland |
Import |
||
|
|
||||
|
Sr.No |
Country |
Activity |
||
|
1 |
Hong Kong |
Export |
||
|
2 |
India |
Export |
||
|
3 |
Switzerland |
Export |
||
|
|
||||
PREMISES
|
||||
|
|
||||
|
Subject operates from a small suite of
offices that are rented and located in the Central Business Area of Dubai. |
||||
|
|
||||
PAYMENT
|
||||
|
|
||||
|
No complaints regarding subject’s payments
have been reported. |
||||
|
|
||||
ADVERSE
DATA
|
||||
|
|
||||
|
Performance Defaults |
: |
No record found |
||
|
Payment Defaults |
: |
No record found |
||
|
Adverse Press Coverage |
: |
No record found |
||
|
Litigations |
: |
No record found |
||
|
Former Business Relationships |
: |
No record found |
||
|
|
||||
INVESTIGATOR'S
COMMENTS
|
||||
|
During the course of this investigation
nothing detrimental was uncovered regarding subject’s operating history or
the manner in which payments are fulfilled. As such the company is considered
to be a fair trade risk. |
||||
DIAMOND INDUSTRY – INDIA
-
From time
immemorial, India is well known in the world as the birthplace for
diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The
achievement of the Indian diamond industry was possible only due to combination
of the manufacturing skills of the Indian workforce and the untiring and
unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
-
The
area of study of family owned diamond businesses derives its importance from
the huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
-
Some of
the basic traits of family run business enterprises include spirit of
entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
-
Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
-
Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company
transactions, financially assisted by banks. In the process, several public
sector banks lost several hundred million rupees. They mostly diverted borrowed
money for diamond business into real estate and capital markets.
-
Excerpts
from Times of India dated 30th October 2010 is as under –
-
Gem
& Jewellery Export Promotion Council in its statistical data has shown the
export of polished diamonds to have increase by 28 % in February 2013. Compared
to $ 1.4 bn worth of polished diamond export in February, 2012, India exported
$ 1.84 billion worth of polished diamonds in February 2013. A senior executive
of GJEPC said, “Export of cut and polished diamonds started falling month-wise
after the imposition of 2 % of import duty on the polished diamonds. But
February, 2013 has given a new ray of hope to the industry as the export of polished
diamonds has actually increased by 28 %. It means the industry is on the
track of recovery and round tripping of diamonds has stopped completely.”
Demand has started coming from the US, the UK, Japan and China. India’s
polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The
banking sector has started exercising restraint while following prudent risk
management norms when lending money to gems and jewellery sector. This follows
the implementation of Basel III accord – a global voluntary regulatory standard
on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.11 |
|
|
1 |
Rs.100.51 |
|
Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major sections
of this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.